According to former Federal Reserve Chairman Alan Greenspan‘s new book, The Map and the Territory: Risk, Human Nature, and the Future of Forecasting, “Unconstrained deficit spending” is the No. 1 economic problem.
Greenspan wrote that failure to address the deficit problem may cause a financial crisis that has the potential to topple the economy from being the best in the world.
Both uncompromising sides of our ongoing debate on fiscal and other issues need to recognize that financial crisis lurks should we fail to resolve our deeply disruptive fiscal imbalance.
According to Moneynews, the deficit is worse than what the official data tells us. This is due liabilities from the bank and corporate bailouts.
In fact, it is estimated that the deficit for fiscal 2013 — which ends Monday — is between $642 billion and $ 700 billion.
Washington needs to reform if it’s going to solve the deficit problems. In fact, according to Greenspan, the highest priority needs to be to fix the broken political system.
Once again, Washington seems caught up in yet another fight to raise the debt ceiling.
While failure to approve such an increase would spell disaster, the country probably wouldn’t lose its Triple-A rating.
The time is coming and it’s coming fast. Neither side seems willing to compromise at this point and a government shutdown seems imminent. Are you willing to lose everything when it happens? Or would you rather be prepared for when it does?
That’s why we promote LifeWave. We want everyone to have a good life, even after the economy collapses. Why? Because we believe it is better to be prepared. Check us out!
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